In the arsenal of project managers, there are a sufficient number of tools to help eliminate possible problems and obstacles. The risk register is one such tool. But what is risk and issue log?
Why Do We Need a Risk Register and Issue Log?
At the present stage, which is characterized by fundamental transformations in the economic systems of the world under the influence of crises, natural disasters, increasing the influence of risk and log issues on economic processes, globalization, there is a need to use a modern integrated approach to management. A new paradigm of management has emerged, which is based on the formation of a process-structured approach that integrates processional, functional, systemic, situational, and dynamic approaches.
After all, as recent events in the world economic system have shown, under the influence of the financial crisis the market managed to maintain and sometimes even strengthen their positions to those companies that are characterized by highly efficient management systems. During a hostile takeover, the top management of the target company is isolated from the buyout process, while a friendly merger, as a rule, involves open negotiation and discussion of the terms of the transaction.
The purpose of using a risk register in project management is to identify, record and track potential risks. Risk in project management is any unexpected event that can occur and affect the execution of a project in a positive or negative way. Each time a factor is identified that can affect the implementation of the project, it should be assessed and entered into the risk register. Among the key features of the risk and log issue are:
- A risk register is a tool used by project managers to track and monitor any project risk.
- Risk management is an essential component of project management because it allows you to proactively confront potential problems and failures.
- The use of the project risk register, also known as the risk log, is a critical part of the risk management process.
What Are the Most Widespread Risk Log Examples?
In today’s highly dynamic environment, the quality of management systems largely depends on the ability of managers to ensure sound risk management, preventing various threats and actively overcoming them. Thus, risk management requires a comprehensive view of all aspects related to the emergence, implementation, and impact of risks on the operation of the enterprise.
Simply put, the risk log is an extension of the risk response plan. While the latter is an action plan to mitigate risks, the former helps control those that do occur. Control of this kind comes down to three main operations: the formation of a basic risk plan, an assessment of the actual risk status, and the determination of further actions. These, and precisely these three operations, completely define the risk log.
An orderly and meaningful risk logging process is not possible without the following three informational examples:
- Risk response plan.
- A baseline against which the actual risk status is compared.
- Progress reports or verbal information on the actual progress of execution, reflecting the actual status of the risk.
In the risk register, it is important to indicate the required risk management activities, including mitigation, transfer, etc. risks. Identification of risk owners will help management to identify the responsible executors of risk management activities, which will make it possible to distribute areas of responsibility in a quality manner, correctly allocate resources, and set acceptable deadlines.